ELMD - Earnings call 2 2024 | Electromed, Inc.

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Operator

Greetings, and welcome to the Electromed Second Quarter Fiscal 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Cavanaugh, Investor Relations. Thank you.

You may begin.

Mike Cavanaugh

you the thank earnings and afternoon, for Electromed joining call. Good results Electromed, quarter second XXXX. Incorporated today, for ended released XX, the Earlier XXXX, financial the of fiscal December quarter at available the currently is release The company's website www.smartvest.com. on

Before actual we performance to that are make and of and some such company's considered Such will would cause forward-looking uncertainties statements are that different management to materially statements this financial subject remind future statements about that the expectations everyone the as on . Any and achievements started, get plans. of risks I or like from today's results call statements, statements management's including projected. be to date. could those represent operating

the or You obligation new filings undertake Please should guidance to not forward-looking any revise information, reliance otherwise. refer place a company's and does the to future company any undue result update on whether statements statements, on SEC as not or this of matter. further events forward-looking for those

With that, Executive now Electromed. to over of Officer and call Cunniff, the President Jim Chief I turn will

James Cunniff

you year everyone at million, and revenue thank Electromed. representing the million period net thrilled of revenue quarter growth resulted per and to $X.XX another XX% is year-over-year in earnings Mike, joining same for Total I'm in today's of for revenue quarter or better growth record from second XXXX. in to $X.X This year XXXX of Thanks, quarter fiscal or came announce fiscal call. the share. record the fifth $XX.X mid-teens quarterly straight

record growth XX% fiscal $X.X operating in year. highlight income a over to the the of period for was proud I'm a prior quarter Similarly, the same million,

we home more international growth the first revenue have quarter's in quarter, the made X detail considerable hospital financials I'll to yielding investments the hand we to call which and with care, all results. Brad strategic our across shortly. growth over discuss reinforces the are As saw of further categories:

CEO, market take on observed our to what and company a provide on I've some time to as forward. wanted objectives learned like first, and expand the update moving joining July since But I look reflect will what in

consistent generating operational on We investments continued growth results. disciplined products, see best-in-class and are paying increased excellence commercial service, strategies revenue company's the expansion positive off profitability. First, these developing and exemplary growth focusing through customer

growing on Going leverage focused capturing forward, committed our to line, we investments designed also remain we're top we to the but operating are growth produce. our

a have discussions, with Additionally, since and from both emerged. joining themes From I've gathering investors. meeting a and spent few these lot the feedback time company, current of potential

are a First, standout a teams generating commercial med that we and development us our and will to microcap in our to strong us enable no financial invest position we small in space continue are unique market initiatives. makes This in cash growing, have tech and yet debt. profitable,

financial results, Second, in reward management's rate shareholder is interest third, business is on investors' generating and which incentive based cash total environment, my like focused a incentive our delivering investors operations. solely us return king, is our like high that cash that increasing compensation the and from on to And goals. aligns is investors

we of million of $XX our cash capital. are our has been there shares surplus over on our with about that a belief Lastly, balance Electromed sheet questions and undervalued, how deploying thinking currently lot about are

and Electromed reviewed opportunity taken under being options assess to every and continue that be are our all shareholders, will thoughtfully and would We beneficial to consideration.

the need seen we joining market critical further since for have company, Next, a development.

revenue patients pulmonologists and XXX,XXX the the roughly managed confirmed that it there study in these care with at are roughly price an that opportunity. XXX,XXX $X.X $XX,XXX HFCWO estimated been average market per physician. patients primary XXX,XXX have are patient, U.S. billion by managed Of that of patients recent sale to prescribed diagnosed being remaining If bronchiectasis. a are Our total, all by were a equates

is believe providers SmartVest fraction We on of in be patients treating HFCWO bronchiectasis care the with work benefits prescribed unlocking opportunity Clearance with a only patients being in therapy. are these However, done Airway technology to our creating awareness market earlier in through continuum. there more the the

also with publish guidelines need for not There's exist. a which treating to do currently patients bronchiectasis HFCWO,

in fiscal XX second in deepen like nicely support with We to hire intend penetration pool area get These outlay. update and our prescribers. of Electromed it's to on will physician to a into capital is not our plan Electromed larger owning leaders and commercial initiatives. of additional will a key sales This the a opinion year, the Being sales overnight, We markets ended quarter engage focus We but to our to penetration. market results required societies continue establish representatives half X drive further with the for but to an rep plan expansion for sales we without and happen and reps key guidelines published. us. those segues our force an at of franchise

they Our they the plans, grow commission more reps can an earn. more have the so uncapped

We and demonstrate providers right conservative reps our sales SmartVest largely the with providers care by is execute take both utility is That a practice. extension health device clinical a approach can the work successfully what patients Electromed's Clearway to to reps to who sale. the hiring of

coverage. with distributor complement company business. distribution to and passive a distributors sales our can signed our in the we small Medical, I've relationship us with market support supply Marathon been service-disabled and focus distribution as a market partners presence expand provide agreement hospital a where We've engaging team's we our have team, to Additionally, had believe they new a for medical the in as well our veteran-owned efforts our small direct Recently, additional field. help better rural sales

easier our breathe on and and to improve VA As allowing including to This clinics federal facilities, access live for products medical products, and providing process all better. a government distributor helping the focuses agencies. federal partnership to easier partner, Medical hospitals Marathon other our agencies, will ordering veterans

us model we expansion sales enhances Marathon care us serve the well, drive market home allows and commercial to agreement further direct forging to continues development. partnerships believe initiatives new like While our and Medical

Also not be will Advantage, our of fresh together ordering sales showcase out rolling customer support clinics that Advantage our the leaders a is company. serve. another of clinic energy way a in and These and expertise, operations. Smart the of ourselves well bring to and and strengthen Electromed across team, XX our for is to and My seasoned backgrounds the that process energy in controller in extend new exceptional This resources last in to is we support months, a of new what company. sheer reflection we've teammates Smart new leaders the position seamless caliber in number around programs QX, service our last differentiate which new throughout the departments to ideas sales talent market. and we may be Electromed operations, of investors CFO, to R&D, and excitement XX domain all added critical the a robust the new known CEO, positions RAQA centered

reflecting X from at connectedness solid the only and the X.XX, end up X.X Glassdoor Our XXXX was strong of the chemistry ago, team. of years a rating

engaged the in we having continue candidates to is engagement up team, interact on execute a team we As leader we an as helps a strong shows recruit together good customers patients our work and knows, leading serve. to strategic with how equally of how us for Moreover, any us and it success, indicator our deliverables. to

reducing products patients easier. XX%, sooner Also, maintaining in under so some share with in time. a issues which when and Materials, Operations supply. to was operational to Last built us struggled our our other nonfinished inventory, had leadership of the up focused like the Senior goods operations has many excellent get team first and short I'd made raw service pass while orders some our materials we they breathe to real-world allows year, focused had back our during yield during companies Director Steve is we levels, were pandemic. short Trnka how pandemic of talent Today, on of X which examples a the difference can of on like

the will happen subsequent quarters. improvement in This

as have quarter. external audits on X last Yanta, and Head last her upgraded team RAQ our have call, mentioned had our and our the in successful and Compliance systems Additionally, Amy of quality

like for best charge are the leading developing we the my in recognize to technology next-gen Skarvan, I'd predecessor, Kathleen now Lastly, commercializing.

commercial As the to someone who I'm excited medical our with the grew about introductions background, new market up for reception world home device in markets. product the Clearway hospital SmartVest and

lighter HFCWO the are with and more supplier that We the the products in smaller, field. is used in intuitively competitive only new technology market in

Brad to top with and will expanding combined to growth our and as Brad? years share I financials. in look leverage line to And market I call we forward operating the turn to continuing that, grow the coming quarters drive take ahead. discuss with

Brad Nagel

of sales $X the quarter well grew Thank the driven target QX result to annualized representative for was a territories to number $XX.X sales per for streamline range year last QX our million, investments our year. QX to million. was primarily department as home This within you, recognized $XX.X of annual revenue $XXX,XXX $XXX,XXX. in as XX% second Jim. in record revenue last revenue the of Net by Home increase growth the quarter Care over increase XX% an over million, recent efficiencies of higher Electromed's reimbursement a our than care slightly as The claims made of process. was

significant addition to the of distributor $XXX,XXX. of a increase for by reported of a by QX international XX% was strategic This care last quarter account cause basis. from year. $XXX,XXX. revenue timing on increased hospital $XXX,XXX, manager was to can to QX revenue X% the year-over-year QX in the delivering a care hospital increased revenue sales revenue. due affected the year-over-year focused fluctuations Home revenue distributor on XX% revenue distributor Home that quarterly by decrease purchases are

in distributors international is international for our currently maintain growing focus updates, to us. continue a business our previous mentioned we markets, current support in primary and but not As the

or to material an as in year. cost The expedite the or or to to did increased which year to profit XX.X% in and QX, compared million last administrative in for $X.X increased due SG&A to representing net net not revenues revenues million, the were Gross purchases, 'XX. compared reoccur Selling, $X.X of increase inventory period FY of year. as XX% general quarter QX the was of million or profit million costs same of $X.X shipping current for expenses in primarily prior increase gross XX% decreased the $XX.X well

and enable X,XXX% was our last primarily $XXX,XXX. headcount expenses QX associated development due primarily is increase with our to with for The to in The to due $XX,XXX our interest income primarily associated $XX,XXX year XX% balances. over versus or $XX,XXX reduced teams was and to decreased Research due our additional The decrease sales growth. supporting to increased increased increase last over the quarter. the costs rates year of Net product to Clearway development. cash QX savings

putting of million income record income record these results are all record to we QX executed of have thrilled of and $X.XX with quarterly $X.X $X.X EPS together, pretax When quarter net a diluted per share. earnings million,

As and of The $XX.X ended receivable of record capital December of cash debt, of cash, in Electromed million in reflects compared XX, XXXX $XX same for million. December cash XXXX, $XX.X had million the shareholders' months a achieving increase X and million no in the last million working accounts in a decrease $XX.X balance year. $X.X of a XX, period $X.X million to total equity

With that, our to please call portion open move Operator, the the to of questions. Q&A we'd like to call.

Operator

comes Our with [Operator question from Wukmir Lake Aaron first Capital Street Instructions] Markets.

Aaron Wukmir

momentum for Brooks. to and HFCWO just patients line on on sort transition Congrats This strong of record of quarter. the with the I want therapy. I the the onto is start guess Aaron

Just direction. trying of a general sense to the get

share? the that and moving last people not hump get what sort cause about I patients your of, to your You gravitate these the bit could technology? some Have on patients And are continue it, on the of level awareness, talked part you vest. guess, towards sort guess an call space necessarily of you technology bronchiectasis towards and quicker quarter of to over market in antibiotics to these the gain staying the to seen just second of in little a I then ultimately to the factors purely would increase question, physician going you

James Cunniff

I'll answer Jim. that is This question.

that's today, think is think couple there's times this lot a treated of care their is, I many the vest my that underlying lot fact in there's comments I a of there on this one within mentioned out are -- they're Unfortunately, as is had mainly date patients I a things, being bronchiectasis. getting a of condition sooner. with which the that you And and by at later their antibiotics. continuum, mentioned because versus are as

the that And sign. that more seeing frequently. a many diagnose that's are recognition we to so there's now pulmonologists patients seeing good And are that bronchiectasis the starting

also for sooner challenge for have the that is to them than to The not vest put happen later. patient we the rather on only

of of of also one for is of the with working and and us us opportunity the for so whole guidelines leaders into areas the actually patients for And can their place key care. market put get as and and areas focus be for one bronchiectasis to societies protocols for a opinion

And point focal us forward. so for a going that's

Aaron Wukmir

And Great. Makes I total sense. another guess question.

So you sort training the your force. last quarter, modified for program of sales

down took happening customers. and with bit with little engagement was training learning the You time a some some there

add added tracking the to liking? QX how quarters? With strategy the changes in new sales solely are and next that of are you on made you've focused and to your been that have here plan HFCWO, couple team has with you the this since And comfortable reps

James Cunniff

excited our sales be class off can it's that for one in sooner out company place the being with for we're we've I the would it, we training our in mean about for I there patients say, reps. selling, get only our protocols Aaron. that sales new put we we've through serve. going gone and reps productive Well, the better to the

we're so refine And about doing, going we're this that. I process, what good and a continue to is work to in feel but

in reps be my X the to mentioned X I we As adding we're are adding next anticipating comments, going months. -- within new

us for in to next to that a anticipate that training will through, later. goes for and make March the group refine because to reps, hit that I it's and to for refine did a beneficial further more we for going for running protocol that them through. that good continuous the training to a going really those from be apply that so chance that be But And we're it to get reps excited we're sooner to there some went and we're class them having those first and the we're group going than ground process rather -- feedback

Aaron Wukmir

And sense. one for total then one Makes Awesome. last me.

that a You space? update been know in with prepared in that the story you growth kind to there. you better sense has stages it's see or an seeing -- But I early like mentioned mentioned your Clearway? and the initial the launch trying how Are general a on think get positive. thoughts little . of in feedback hospitals but just of remarks, the is bit you'd to

James Cunniff

we No, I hospital nascent the last provided the quarter. you've hospital device questions The market, appreciate, the us in Aaron, that Clearway to now. -- for market us. hospital introduced the pretty And again, the it's right just for a

it's early So there. days

grew longer Our lot than in the hospital home selling the the market quarter. within the But business is a cycle market. X%

to And that see space. we're going that so anticipating improvements we're in

predominantly mentioned to a pulmonologists to are and I really my of is have clinics. reps space our on focused as Also, because in one our who opportunities, within I distributors with remarks, stronger believe, that market some footprint sales work selling

it's a many we with to hospital have and relationship And within when do business wants product. up we facility because rounding best-in-class who's times, the pick a pulmonologist, access have that to so

is about sales the great hospital introduced, their the feel call our going I not some to primary we new make market, we point, that sure which have but product So still, reps distracting that opportunities that think, after in from we're we've clinic.

Aaron Wukmir

Got you.

congrats to total Okay. keep quarter. the following sense. excited Makes strong And guys. on you We're

James Cunniff

your thank the everybody of Electromed. there's and and unless joining you Well, call for support I'm going thank questions, wrap to other no the up continued for today, call

value our one we I'm against plans. And I growth continue profitability that's primary our mentioned, As drive will executing objectives. that, can to of to do continue shareholders. we increased our excited If to and

in the please If follow-up you're contact partners your everybody. today investment and Relations Electromed. appreciate interested ICR in our Thank you. time call, Thank I appreciate you, Investor at Westwicke. your

Operator

conference may good That disconnect. day. parties Have All concludes today's call. now a

Electromed (ELMD) 13 Feb 242024 Q2 Earnings call transcript